When someone you follow on Instagram or TikTok, or some other social media platform recommends a product or service, do you ever wonder if they’re being paid or compensated in some way for that endorsement?
If they are, they’re supposed to tell you. But in many cases, they don’t. The same disclosure should be done by podcasters, bloggers and broadcasters.
To reduce the volume of misleading and deceptive endorsements, the Federal Trade Commission is proposing new guidelines that make it crystal clear that when there are “material connections” between advertisers and endorsers, that information must be disclosed in a clear and conspicuous manner.
If not, such marketing could be considered misleading or deceptive.
More Info:
FTC Proposes New Advertising Guidelines Against Misleading Endorsements
(This story includes the Consumerpedia podcast “Whatever Happen to Truth in Advertising?” featuring Bonnie Patten, executive director of the non-profit consumer group Truth in Advertising.)